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House GOP Unveils Road Funding Proposal

By Drew Daudelin

Posted January 11, 2016

House Speaker Brian Bosma, R-Indianapolis, laid out his caucus' plan for road funding Monday, which includes a pair of tax increases. It's perhaps the most comprehensive proposal unveiled this year at the Statehouse.

Part of the House GOP's plan is a gas tax increase of four cents per gallon that Bosma says amounts to $25 a year for the average Hoosier driver.

Both Bosma and Ways and Means Chair Tim Brown, R-Crawfordsville, emphasize that they remain staunchly anti-tax. But Bosma says the economic growth benefits of their plan demand an exception.

"I'm not pro-tax, I am however pro-growth, and this is an economic investment for our state's future without mortgaging our future or our kids'," Bosma said.

The plan would also create a dollar-for-dollar matching grant program for local communities.

Brown says the state would have to develop a reliable measure for how much locals need before that money goes out.

"Some counties, some locals have an understanding of what their assets, or roads and bridges, what condition they're in," Brown said. "But it's not consistent and it's not uniform across the state."

The proposal also shifts more money from the state's sales tax on gasoline into road funding. It covers that shift with a one dollar increase in the cigarette tax, which would be used to help fund Medicaid.

Bosma says the plan would generate between $350 and $400 million a year.

House Democratic Leader Scott Pelath says in a statement that while it's good to see lawmakers wanting to fix Indiana's roads, the House GOP plan unnecessarily takes money from taxpayers while billions remain in state reserves.

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